Exercise – Three Levels of a

Product
 Lesson
 Exercise
 Answer
Here’s a recap before the exercise (below): The CORE product is NOT the
tangible, physical product. You can’t touch it. That’s because the core product is
the BENEFIT of the product that makes it valuable to you. So with the car
example, the benefit is convenience i.e. the ease at which you can go where
you like, when you want to. Another core benefit is speed since you can travel
around relatively quickly.
Complete the table below by filling in the blank spaces. All companies have a
CORE, ACTUAL and AUGMENTED product or service.

Product or service Actual

or brand Core Product Product Augmented Product

Ford Focus Freedom to travel A motor car  

Spanish Holiday Relaxation   Holiday insurance

Budget/No Frills
Airline e.g. EasyJet or An airline Food bought during
Ryanair –   journey your flight

Excitement and Sporting

Chelsea Football Club leisure event  

Association with Nike online allows you

Nike the best in sports. to personalise your
trainers
 Product or service Actual
or brand Core Product Product Augmented Product

Hilliers’ Garden Goods for

Centres   gardens Hilliers’ gardening club

The ACTUAL product is the tangible, physical product. You can get some use
out of it. Again with the car example, it is the vehicle that you test drive, buy
and then collect.
The AUGMENTED product is the non-physical part of the product. It usually
consists of lots of added value, for which you may or may not pay a premium.
So when you buy a car, part of the augmented product would be the warranty,
the customer service support offered by the car’s manufacture, and any after-
sales service.

Answer – Three Levels of a

Product
 Lesson
 Exercise
 Answer
Here’s a recap before the answer (below): The CORE product is NOT the
tangible, physical product. You can’t touch it. That’s because the core product is
the BENEFIT of the product that makes it valuable to you. So with the car
example, the benefit is convenience i.e. the ease at which you can go where
you like, when you want to. Another core benefit is speed since you can travel
around relatively quickly.
Here are the answers. How did you do?

Product or service Actual

or brand Core Product Product Augmented Product

Ford Focus Freedom to A motor car Ford finance

Product or service Actual
or brand Core Product Product Augmented Product

travel

Two weeks in
Spanish Holiday Relaxation a resort Holiday insurance

Budget/No Frills
Airline e.g. EasyJet Gets you from A An airline Food bought during
or Ryanair – to B cheaply journey your flight

Chelsea Football Excitement and Sporting Personalised shirts and

Club leisure event other merchandise

Shoes and
Association with other Nike online allows you
Nike the best in sports clothing to personalise your
trainers

Hilliers’ Garden Leisure and Goods for

Centres relaxation gardens Hilliers’ gardening club

The ACTUAL product is the tangible, physical product. You can get some use
out of it. Again with the car example, it is the vehicle that you test drive, buy
and then collect.
The AUGMENTED product is the non-physical part of the product. It usually
consists of lots of added value, for which you may or may not pay a premium.
So when you buy a car, part of the augmented product would be the warranty,
the customer service support offered by the car’s manufacture, and any after-
sales service.